Liquidate Risky Positions
When some investors sense danger ahead, they follow along with the general sentiment and sell investments. Smart investors start by selling risky positions. Others sell even some of their most stable cryptocurrency as a protection against losses.
However, experienced investors do not follow the nervous investors who rush to sell everything and sit at the sideline. If you sell everything, you are likely to miss out on the big gains if the market falls and recovers. Instead of selling everything, top investors just sell the risky coins and positions from their portfolios while holding on to the stable coins.
Hoard Cash
Some top investors leave their portfolio alone, but stop reinvesting when cash balances grow. If the investors are heavily invested in coins , they may turn off reinvestments and hold onto cash as a hedge against portfolio losses. After all, you know your cash position will never lose value.